Nick Train: World-class UK company shares are going cheap

Finsbury Growth & Income’s Nick Train is one of Britain’s best known fund managers and he joins Simon Lambert on this episode of the Investing Show for an in-depth interview.

Train’s Warren Buffett-style investing approach has won him a legion of fans among the UK’s personal investors, with years of beating the market under his belt.

But markets have shunned the kind of large UK household name stocks that Train favours in recent years, shareholders have had their patience tested.

Train explains how he has handled that period of underperformance and why he thinks it is important to stick to the trust’s clearly laid out approach rather than shake things up.

He says: ‘It is no fun underperforming. And it really behoves you in those circumstances to behave in a disciplined way. I hope that we have done that.’

Train is optimistic for the future though, saying that he believes there is a cohort of more growth orientated companies coming through in the UK that are world class and can profit from rapid advances in technology.

While investors have trained their focus on chasing up US tech giants’ share prices amid the artificial intelligence boom, Train says they are some FTSE-listed firms that also offer a huge opportunity to profit from the application of AI.

He also discussed the prospects for two household name holdings, Guinness-maker Diageo and luxury brand Burberry that have suffered in recent years.

He reveals the new stock that he has bought that fits this profile and the other companies among Finsbury Growth & Income’s concentrated portfolio that he believes are both great value and primed to perform for investors.